The Magic of Rising Dividends

There are potential benefits to investing long-term in a company that regularly increases its dividend. The longer you hold your shares, the higher the yield you will receive on your original investment, assuming dividends increase over time. Additionally, the compounding of reinvested dividends could generate increased investment returns over time.

As an example: Investors who purchased Realty Income shares on 12/31/2006 and collect their dividends have received (as of 6/30/2017):

9.2% yield on cost (vs. an original yield of 5.5%) | 67% increase in the amount of dividend income
99% increase in the value of shares | 74% of the original investment paid back as dividend income

The Magic of Rising Dividends Over Time

The Cumulative Dividend Effect

1K Shares Purchased on

Original Investment

Investment Value as of
6/30/17

Original Annual Dividend Income

Current Annual Dividend Income (1)

Original Yield

Current Yield on Cost at
6/30/17

Dividends Received through
6/30/17

% of Original Investment
Paid Back in Dividends

10-18-94

$8,000

$55,180

$900

$2,538

11.3%

31.7%

$34,217

428%

12-31-94

$8,563

$55,180

$900

$2,538

10.5%

29.6%

$33,917

396%

12-31-95

$11,250

$55,180

$930

$2,538

8.3%

22.6%

$33,005

293%

12-31-96

$11,938

$55,180

$945

$2,538

7.9%

21.3%

$31,959

268%

12-31-97

$12,719

$55,180

$960

$2,538

7.5%

20.0%

$31,012

244%

12-31-98

$12,438

$55,180

$1,020

$2,538

8.2%

20.4%

$30,030

241%

12-31-99

$10,313

$55,180

$1,080

$2,538

10.5%

24.6%

$28,987

281%

12-31-00

$12,438

$55,180

$1,110

$2,538

8.9%

20.4%

$27,896

224%

12-31-01

$14,700

$55,180

$1,140

$2,538

7.8%

17.3%

$26,775

182%

12-31-02

$17,500

$55,180

$1,170

$2,538

6.7%

14.5%

$25,624

146%

12-31-03

$20,000

$55,180

$1,200

$2,538

6.0%

12.7%

$24,442

122%

12-31-04

$25,290

$55,180

$1,320

$2,538

5.2%

10.0%

$23,201

92%

12-31-05

$21,620

$55,180

$1,395

$2,538

6.5%

11.7%

$21,855

101%

12-31-06

$27,700

$55,180

$1,518

$2,538

5.5%

9.2%

$20,418

74%

12-31-07

$27,020

$55,180

$1,641

$2,538

6.1%

9.4%

$18,857

70%

12-31-08

$23,150

$55,180

$1,701

$2,538

7.3%

11.0%

$17,195

74%

12-31-09

$25,910

$55,180

$1,716

$2,538

6.6%

9.8%

$15,488

60%

12-31-10

$34,200

$55,180

$1,731

$2,538

5.1%

7.4%

$13,767

40%

12-31-11

$34,960

$55,180

$1,746

$2,538

5.0%

7.3%

$12,030

34%

12-31-12

$40,210

$55,180

$1,821

$2,538

4.5%

6.3%

$10,259

26%

12-31-13

$37,330

$55,180

$2,186

$2,538

5.9%

6.8%

$8,111

22%

12-31-14

$47,710

$55,180

$2,201

$2,538

4.6%

5.3%

$5,919

12%

12-31-15

$51,630

$55,180

$2,292

$2,538

4.4%

4.9%

$3,648

7%

12-31-16

$57,480

$55,180

$2,430

$2,538

4.2%

4.4%

$1,257

2%

6-30-17

$55,180

$55,180

$2,538

$2,538

4.6%

4.6%

(1) Current annual dividend income based on annualized dividend per share of $2.538

Comparison of $100 Invested in Realty Income in 1994 vs. Major Stock Indices

LEGAL DISCLAIMER:Past performance is not a reliable indicator of future performance. There is risk that dividends will not always increase, that dividends will not be declared according to past history, or that dividends will be declared at all.